Credit Card Rates At “Record High”
29th January 2011
Todd Zywicki is shocked, shocked that credit card issuers are fulfilling his predictions.
Wow, who could have possibly predicted that the Credit CARD Act’s rules that limit non-interest fees and the ability to raise interest rates when a borrower’s risk changes would result in “record high” interest rates (other than me, of course, when I testified to the Senate Banking Committee in 2009 that the act would result in higher interest rates and other than the sponsor of the law, who has acknowledged that it has resulted in higher interest rates but has decided for the rest of us that higher rates is a good thing)? Even more amazing, it appears that these restrictions on risk-based pricing has hit poor credit risks even harder than less-risky consumers.